Glove share price rise, China PMI spur KLCI gains

-A +A

KUALA LUMPUR (June 30): The FBM KLCI closed 6.54 points or 0.44% higher at 1,500.97 today, partly helped by share price gains in rubber glove manufacturers, amid news of a resurgence in global Covid-19 cases.

Analysts said the KLCI's gain was also underpinned by China’s stronger-than-expected official manufacturing Purchasing Managers' Index (PMI) reading.

"We may see [choppy trading prevailing] amid the rising number of Covid-19 cases across the globe, although it is very much contained in Malaysia,” Malacca Securities Sdn Bhd senior analyst Kenneth Leong told theedgemarkets.com.

Globally, it was reported that Asian shares advanced today as positive economic data from China and the US helped to close out a strong quarter, though a renewed surge in global coronavirus cases underlined a challenging investment climate.

It was reported that China's official manufacturing PMI came in at 50.9 in June, compared with May's 50.6, National Bureau of Statistics data showed today, and was above the 50.4 forecast in a Reuters poll of analysts.

Across Bursa Malaysia today, the exchange saw 5.35 billion shares traded for RM3.74 billion. Top gainers included KLCI-linked rubber glove manufacturers Hartalega Holdings Bhd and Top Glove Corp Bhd.

Hartalega's share price closed up 50 sen or 4% at RM13, while Top Glove rose 40 sen or 2.55% to RM16.10.

Bursa's Healthcare Index, which tracks share prices of companies including rubber glove manufacturers and hospital operators, finished up 45.44 points or 1.98% at 2,337.08 as investors took their cue from updates that global Covid-19 cases had surged past the 10 million mark.

The surge was reported yesterday as rising numbers in Australia and a big spike in southern and western US threatened to slow down economic recovery.

"The global death toll from Covid-19 reached half a million people on Sunday, with a quarter of those in the US, where cases surged in southern and western states," Reuters reported.